US dollar reversed its weekly losses!

The U.S. dollar ended last week lower after enduring significant pressure from various threats to the U.S. economy, primarily driven by Trump’s tariff policies. Trade war rhetoric dominated financial markets following the escalation of tariff measures.

Canada retaliated against Trump’s decision with a counter tariff on its US imports, Mexico considers similar measures, and China also attacked Trump, showing willingness to take counter trade restrictions. ?

The second factor behind the greenback's losses last week was jobs data, which fell short of market expectations. The currency started to fall after the data showed U.S. wage growth weaker than forecast, increasing the likelihood of further rate cuts by the Federal Reserve. According to Federal Reserve Chairman Jerome Powell, the deterioration in labour market conditions is no longer viewed as harmful to the economy.

The currency reversed its course at the start of the new trading week following a televised interview with Trump, during which he declined to rule out the possibility of a recession.

Additionally, concerns have emerged over a potential government shutdown if U.S. legislators fail to reach an agreement on a stopgap bill to fund government agencies by Friday. Interestingly, these shutdown concerns provided support for the U.S. dollar on Monday.

?